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v3.26.1

Segment Information (Tables) | 3 Months Ended
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Jun. 30, 2026
Segment Reporting [Abstract] |
Schedule of Segment Information | Segment information for the three months ended June 30, 2026 and 2025 is presented in the tables below:
|  |  | Three Months Ended
|  |  | June 30,
|  |  |  |  | 2026 |  | 2025
|  |  |  |  | (Amounts in millions)
Segment revenues |  |  |  |  |  |  |
Studio Business: |  |  |  |  |  |  |
Motion Picture |  |  |  |  | $ | 587.3 |  |  | $ | 267.3 |
Television Production |  |  |  |  | 189.3 |  |  | 288.5 |
Total Studio Business |  |  |  |  | 776.6 |  |  | 555.8 |
Intersegment eliminations |  |  |  |  | — |  |  | (29.9) |
|  |  |  |  | 776.6 |  |  | 525.9 |
Intersegment revenues |  |  |  |  |  |  |
Studio Business: |  |  |  |  |  |  |
Motion Picture |  |  |  |  | — |  |  | 3.1 |
Television Production |  |  |  |  | — |  |  | 26.8 |
Intersegment eliminations |  |  |  |  | — |  |  | 29.9 |
Segment direct operating expenses |  |  |  |  |  |  |
Studio Business: |  |  |  |  |  |  |
Motion Picture |  |  |  |  | 340.4 |  |  | 136.7 |
Television Production |  |  |  |  | 151.5 |  |  | 239.6 |
Total Studio Business |  |  |  |  | 491.9 |  |  | 376.3 |
Intersegment eliminations |  |  |  |  | — |  |  | (42.7) |
|  |  |  |  | 491.9 |  |  | 333.6 |
Segment distribution and marketing |  |  |  |  |  |  |
Studio Business: |  |  |  |  |  |  |
Motion Picture |  |  |  |  | 109.8 |  |  | 105.8 |
Television Production |  |  |  |  | 12.0 |  |  | 12.3 |
Total Studio Business |  |  |  |  | 121.8 |  |  | 118.1 |
Segment general and administration |  |  |  |  |  |  |
Studio Business: |  |  |  |  |  |  |
Motion Picture |  |  |  |  | 32.1 |  |  | 22.4 |
Television Production |  |  |  |  | 15.6 |  |  | 10.6 |
Total Studio Business |  |  |  |  | 47.7 |  |  | 33.0 |
Segment profit |  |  |  |  |  |  |
Studio Business: |  |  |  |  |  |  |
Motion Picture |  |  |  |  | 105.0 |  |  | 2.4 |
Television Production |  |  |  |  | 10.2 |  |  | 26.0 |
Total Studio Business |  |  |  |  | 115.2 |  |  | 28.4 |
Intersegment eliminations |  |  |  |  | — |  |  | 12.8 |
|  |  |  |  | $ | 115.2 |  |  | $ | 41.2 |
Schedule of Reconciliation Of Total Segment Profit To The Company's Income (Loss) Before Income Taxes | The following table reconciles total segment profit to the Company’s loss from continuing operations before income taxes for the three months ended June 30, 2026 and 2025:
|  |  | Three Months Ended
|  |  | June 30,
|  |  |  |  | 2026 |  | 2025
|  |  |  |  | (Amounts in millions)
Total segment profit |  |  |  |  | $ | 115.2 |  |  | $ | 41.2 |
Corporate general and administrative expenses(1) |  |  |  |  | (35.9) |  |  | (32.1) |
Adjusted depreciation and amortization(2) |  |  |  |  | (3.4) |  |  | (3.5) |
Restructuring and other |  |  |  |  | (2.9) |  |  | (4.8) |
Unallocated rent cost included in direct operating expense(3) |  |  |  |  | (5.1) |  |  | (5.4) |
Adjusted share-based compensation expense(4) |  |  |  |  | (40.3) |  |  | (2.8) |
Purchase accounting and related adjustments(5) |  |  |  |  | (2.0) |  |  | (3.2) |
Operating income (loss) |  |  |  |  | 25.6 |  |  | (10.6) |
Interest expense |  |  |  |  | (56.9) |  |  | (68.7) |
Interest and other income |  |  |  |  | 4.8 |  |  | 4.4 |
Other gain (loss), net |  |  |  |  | 3.7 |  |  | (17.0) |
Loss on extinguishment of debt |  |  |  |  | — |  |  | (1.0) |
Gain on investments, net |  |  |  |  | 1.3 |  |  | 8.8 |
Equity interests loss |  |  |  |  | — |  |  | (1.2) |
Loss from continuing operations before income taxes |  |  |  |  | $ | (21.5) |  |  | $ | (85.3) |
___________________ (1)Corporate general and administrative expenses include certain corporate executive expense (such as salaries and wages for the office of the Chief Executive Officer, Chief Financial Officer, General Counsel and other corporate officers), investor relations costs, costs of maintaining corporate facilities, and other unallocated common administrative support functions, including corporate accounting, finance and financial reporting, internal and external audit and tax costs, corporate and other legal support functions, and certain information technology and human resources expense. Corporate general and administrative expenses also include costs that were previously incurred in support of the Media Networks segment but are not directly attributable to it and thus were not recorded in discontinued operations, see Note 2. (2)Adjusted depreciation and amortization represent depreciation and amortization as presented on the unaudited condensed consolidated statements of operations less the depreciation and amortization related to the non-cash fair value adjustments to property and equipment and intangible assets acquired in acquisitions which are included in the purchase accounting and related adjustments line item above, as shown in the table below:
|  |  | Three Months Ended
|  |  | June 30,
|  |  |  |  | 2026 |  | 2025
|  |  |  |  | (Amounts in millions)
Depreciation and amortization |  |  |  |  | $ | 4.4 |  |  | $ | 4.4 |
Less: Amount included in purchase accounting and related adjustments |  |  |  |  | (1.0) |  |  | (0.9) |
Adjusted depreciation and amortization |  |  |  |  | $ | 3.4 |  |  | $ | 3.5 |
(3)Amounts represent rent cost for production facilities that were unutilized due to lower demand following the industry strikes and, as such, are not allocated to the Company’s segments. (4)The following table reconciles total share-based compensation expense to adjusted share-based compensation expense for the three months ended June 30, 2026 and 2025:
|  |  | Three Months Ended
|  |  | June 30,
|  |  |  |  | 2026 |  | 2025
|  |  |  |  | (Amounts in millions)
Share-based compensation expense |  |  |  |  | $ | 41.1 |  |  | $ | 1.7 |
Less: Amount included in restructuring and other(i) |  |  |  |  | (0.8) |  |  | 1.1 |
Adjusted share-based compensation |  |  |  |  | $ | 40.3 |  |  | $ | 2.8 |
___________________ (i)Amounts represent share-based compensation (expense) benefit recorded within restructuring and other expenses, attributable to the accelerated vesting of equity awards pursuant to certain severance arrangements. (5) Purchase accounting and related adjustments primarily consist of the amortization of non-cash fair value adjustments to certain assets acquired in acquisitions. The table below presents the amounts included in each financial statement line item for the three months ended June 30, 2026 and 2025:
|  |  | Three Months Ended
|  |  | June 30,
|  |  |  |  | 2026 |  | 2025
|  |  |  |  | (Amounts in millions)
Purchase accounting and related adjustments: |  |  |  |  |  |  |
General and administrative expense(i) |  |  |  |  | $ | 1.0 |  |  | $ | 2.3 |
Depreciation and amortization |  |  |  |  | 1.0 |  |  | 0.9 |
Total purchase accounting and related adjustments |  |  |  |  | $ | 2.0 |  |  | $ | 3.2 |
___________________ (i)Amounts represent compensation expense associated with the noncontrolling equity interests in the distributable earnings of 3 Arts Entertainment. Due to the link to continued employment performance, these amounts are classified as general and administrative expense instead of noncontrolling interest in the consolidated statements of operations.
Schedule of Reconciliation of Segment General and Administrative Expense to Consolidated | The following table reconciles total segment general and administration expenses to the Company’s total consolidated general and administration expenses for the three months ended June 30, 2026 and 2025 as presented on the unaudited condensed consolidated statement of operations:
|  |  | Three Months Ended
|  |  | June 30,
|  |  |  |  | 2026 |  | 2025
|  |  |  |  | (Amounts in millions)
General and administration |  |  |  |  |  |  |
Segment general and administrative expenses |  |  |  |  | $ | 47.7 |  |  | $ | 33.0 |
Corporate general and administrative expenses |  |  |  |  | 35.9 |  |  | 32.1 |
Share-based compensation expense included in general and administrative expense |  |  |  |  | 40.3 |  |  | 2.8 |
Purchase accounting and related adjustments |  |  |  |  | 1.0 |  |  | 2.3 |
Total general and administration expenses |  |  |  |  | $ | 124.9 |  |  | $ | 70.2 |
Schedule of Reconciliation of Assets from Segment to Consolidated | The following table reconciles total segment assets to the Company’s total consolidated assets as presented on the unaudited condensed consolidated balance sheets:
| June 30, 2026 |  | March 31, 2026
| (Amounts in millions)
Assets |  |  |
Motion Picture | $ | 2,125.5 |  |  | $ | 2,247.2 |
Television Production | 2,331.4 |  |  | 2,288.5 |
Other unallocated assets(1) | 876.1 |  |  | 791.4 |
Total assets | $ | 5,333.0 |  |  | $ | 5,327.1 |
___________________ (1)Other unallocated assets primarily consist of cash, other assets and investments.

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